Oh thank you! This is a really good advice and sounds like a rock solid strategy!
Feel lucky now!
Would it be easier to attempt 4pts with 5 contracts or 10 pts with 2 contracts trading the NQ?
- Thread starter ftrexx1
- Start date
Feel lucky now!
I think this is very bad advice.
When you trade you need at least 3 things:
- Rule that defines when to enter
- Rule that defines when to exit
- Rule that defines when to take loss (stop)
The reason why the advice is bad is the last rule: Rule that defines when to take loss (stop)
When you enter a trade, you don’t know what the price will do from tick to tick.
So prices can go in the good direction for 5 points and then reverse to get hit by the stop before you exit the trade with a profit.
If you now do the opposite of that trade, with the same quotes, prices will go wrong at start and can go next in the good direction. But the problem is that, as the trade starts going wrong first, you might be stopped out because the move against your position goes beyond your stoploss. So doing the opposite of your initial trade will give exactly the same loss/result.
Doing the opposite is only working if you are not stopped out because of the volatility. You should check for each trade that you do if you are not stopped out before the theoretical exit is reached.
Here's my thought. You start with 2 contracts both with the same stop and different targets. If the 1st contract goes to the 1st target, you can bring up your stop a bit since trade is now going in your direction. This way, if you get stopped out on the 2nd contract you still end up either BE or with a small loss. The 2nd target will be higher then the 1st target. So if you reach the 2nd target your profit should be higher than if you were stopped out on both contracts at the start.
As Overnight says whipsaw is the issue.
Best way is to have a massive account so you can take 1000pts against you, set TP might aswell go 10pts and leave it no SL till tp is hit, 99% of the time it'll be hit within 12hours, 99% profit and generating small income.
0.9% it will take upto a month to come back.
0.1% of the time it will wipe your account.
Feeling lucky?
There are sadly no easy ways to profit, I was trading well no real losers up 20% in a week, then market random news event caused a 100pt spike against me margin calling me thankfully about -50pts giving back all the hard earned gains in 2seconds
Best way is to have a massive account so you can take 1000pts against you, set TP might aswell go 10pts and leave it no SL till tp is hit, 99% of the time it'll be hit within 12hours, 99% profit and generating small income.
0.9% it will take upto a month to come back.
0.1% of the time it will wipe your account.
Feeling lucky?
There are sadly no easy ways to profit, I was trading well no real losers up 20% in a week, then market random news event caused a 100pt spike against me margin calling me thankfully about -50pts giving back all the hard earned gains in 2seconds
If that's the issue, solve that problem. That's why it takes years before one is consistently profitable in ALL KIND of markets.
Making a little bit of money in strong trends is no proof at all that you are a good trader.
So the loss trading ES could run up to 50K. You would indeed need a massive account.
Solving whipsaw just opens up another problem to solve and around in circles you go.
Not an issue in suffering with currently, but you would with a 4pt NQ SL, and without a 4pt SL you'd have massive losers which would wipe out 5 good trades.
This is the employee mindset. You need the business owner mindset.You've set yourself up to fail already. Trading is a game of weeks and months, not hours and days. I say this as a day trader. Develop a trading (business) plan. Then execute your plan. Pay yourself a set draw from owner's capital (this can be weekly, but you had better be well-capitalized to justify). Let profits in excess of your draw accrue. Scale up according to your plan. Your plan should include benchmarks that will allow you to increase your weekly draw. Your plan should also have a max drawdown that will cause you to cease operations to come up with a better plan.
No, solving whipsaws does not necessarily create other problems.
Your system should be build in such a way that you can add solutions for certain problems without interfering in the rest of the system. You should protect the performing part and only replace the non performing part. But that takes a lot of inspiration, transpiration, an a lot of hours.
Trading should be based on a modular system. There is no "one fits all" system.
Sounds great in theory but in reality there is always a knock on effect that will take your money
I don't suffer whipsaw which exposes me to 90% but draw downs still make it a zero sum game, although revamped method so find out in a few weeks if thats still the case or what the next issue will be.
12 years very part time, trading and long term consistently profitable is hard very hard, near on impossible sadly.